Consider a scenario where a country is experiencing rapid technological advancement. How should the government adjust its CPI calculation to better reflect true inflation?

• A. The government should frequently update the CPI basket to include new products and adjust for quality improvements.
• B. The government should use historical prices to ensure stability in inflation measurement.
• C. The government should exclude new products from the CPI basket to maintain consistency.
• D. The government should focus solely on traditional retail prices to avoid outlet bias.

Answer: (A)